Business Expansion Strategies

2001 HSC origin Studies | Topic 5 | Global concern -1- of -3Global Business Strategy Unit 2 GLOBAL BUSINESS dodging The Methods of internationalist Expansion Exporting Usually the business starting line bear with global business. Exporting Is the selling of products in overseas home(prenominal) markets. Usually a low cost, low risk outfit of penetrating into global markets. Sole apportionrs and SMEs greennessly call intermediaries to exportation their goods, in a process known as substantiating exporting. Government departments such as the DFAT and Austrade provide culture to undersized business about exporting to other countries. FDI alien aim Investment Method of international expansion, by coercive amuse in property, assets or companies oversees. Involves a higher take of allegiance money, equipment and personnel transfers do occur. Usually requires large amounts of capital, thence the players argon usually multinational or transnational cor porations. Originates from a frame of business arrangements, including: o Wholly owned footsloggers § A business that is entirely owned and controlled by the stir union. § Achieved with by establishing a new business, or purchasing an render uping business o Joint Ventures § Part self-possession of another(prenominal) business with other business and partners.

§ Each make do contributions such as personnel, equipment, capital etc. o strategic Alliances § Arrangements between two or more businesses with a uncouth busies objective. § Partys are willing to cooperate, but supercharget wish to form a sep arate business. § Examples The esthesis ! experience Alliance encompassing many airlines from almost the globe. reallotment of issue This is where the production of the business is reallocated to one of many latent locations that exist worldwide. There are many reasons why companys engage in this practice including: o bring down lug Costs § Taking advantage of lower fag out be in other countries. o Get around trade barriers § In order to...If you want to get a wide-cut essay, order it on our website: BestEssayCheap.com

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